MARQUETTE, MI— The NMU Foundation updated the Marquette City Commission Monday night on plans for the old Marquette General Hospital property.
Foundation Executive Director of Business Engagement, Dave Nyberg, said hazardous materials surveys of the site revealed nothing out of the ordinary. The due diligence process did, however, identify a potential for a $166 million investment over a seven-year bill schedule for a diverse project that would serve the needs of the community.
The biggest barrier, Nyberg said, is the $15 million cost of demolishing the old hospital buildings. The Foundation wants to partner with the city and the Michigan Economic Development Corporation to reduce or eliminate that cost. He said removing or greatly reducing the expense could obviate the need for extending the TIF term and bring the property back on the tax rolls sooner.
TIF stands for tax increment financing. It captures the taxes generated by the increase in property value and is used to fund eligible activities on the site.
Nyberg said the Foundation intends to work with the city and county on a framework for a local Brownfield plan, which would open up funding opportunities through the Michigan Strategic Fund.
An architect with Milwaukee design firm EUA discussed preliminary ideas for the space, like retailers, pathways, and mixed-use housing. Commissioner Jessica Hanley said middle-class housing must be incorporated into project plans in order for her to support it.
“I really would like to see housing for that middle portion—for the workers, for the people who are going to be working at NMU, for the people who are going to be working at the hospital, that can’t find housing at this point, that middle ground. I think it’s important that we make sure to get that property in there more than just about anything else, because that’s the one that’s really missing right now.”
Commissioners also discussed the creation of additional housing for area seniors. All indicated they supported the project moving forward.
Marquette Assistant City Manager Sean Hobbins said at the beginning of the project the taxable value of the site and available TIF would be low, but as the investment ramps up, the taxable value will shoot up. He predicted the final taxable value of the site after 15 years would be in the $80 million to $90 million range.
Next steps in the project include creating a memorandum of understanding outlining the priorities, goals and intents for both the Commission and the Foundation. Foundation officials will proceed over the next few weeks with a Request for Qualifications for a master developer, who would subcontract to construct different parts of the site.
